BUSINESS STUDIES CLASS 11 NOTES

    Registration of a partnership firm is not mandatory under law, however, if the partners so desire may register the firm with the Registrar of Firms of the state in which the firm's main office is situated. A partnership firm may be registered at the formation or at any time thereafter.                      Image Source: Pexels Procedure for Registraion       In order to get a partnership firm registered, an application in a prescribed form must be filled with the Registrar of Firms. The application should contain the following information: 1. The name of the firm  2. The principal place of business of the firm 3. Names of other places where the firm's business is carried on. 4. Names in full and permanent addresses of the partners.  5. The date on which each partner joined the firm 6, Duration of partnership, if any.     The application should be signed and verified by each partner, t...

  Partnership Deed is a document containing the terms and conditions of a partnership business. It is an agreement in writing signed by all the partners duly stamped and registered. It defines the rights, duties, and obligations of partners. The partnership deed must not contain any term which is contrary to the provisions of the Partnership Act. Even though it is not necessary to have a written agreement, a written agreement is helpful in preventing and resolving disputes among the partners. The terms and conditions of a partnership deed can be changed with the consent of all the partners.     A partnership deed normally contains the following clauses: 1. Name of the firm. 2. Nature of the firm's business 3. The principal place of business. 4. Duration of partnership, if any 5. Names  and addresses of partners 6. Amount of capital to be contributed by each partner 7. The amount which can be withdrawn by each partner. 8. The profit-sharing ratio. 9. Rate of interest,...

The partnership form of the business organization came out from the limitations of the sole proprietorship business. When a business expands, a single person is unable to arrange the funds and bear the risks. He cannot manage all the functions of business by himself. Therefore, two or more persons join hands and combine their capital and skills to start a business.  Meaning of Partnership:         A partnership is a voluntary association of two or more persons who agree to carry on some business jointly and share its profits and losses. They combine their funds and skills to carry on business together. Definition by L. H. Haney :        Partnership is the relation existing between two persons competent to make contracts, who agree to carry on lawful business in common with a view to a private gain. Definition according to The Partnership Act 1932:      Partnership is the relation between persons who have agreed to share profits...

Joint Hindu Family business is one of the oldest forms of business organization in the country. It refers to a form of organization wherein the business is owned and carried on by the members of the Hindu Undivided Family( HUF). It is governed by Hindu Law. If a person is born in the family then he/she will automatically become a member of the business.     The business is controlled by the head of the family who is the eldest member and is known as Karta. The members have equal rights in the property of an ancestor irrespective of their gender (male or female). The members are known as Co-parceners. Examples: Reliance Industries Ltd., Mahindra & Mahindra Ltd. Haldiram's Pvt Ltd. Characteristics  1. Formation: For the formation of the Joint Hindu Family business there should be at least two members in the family and an ancestral property to be inherited by them. No agreement is required for the business because membership is by birth. 2. Liability:  The liabilit...